How often is a clients portfolio rebalanced?
The client’s portfolio is accessed on the 15th of the middle month of each calendar quarter (i.e. February 15th of Q1). When a clients portfolio asset allocation mix deviates by more than 2.5% from the target asset class weighting, a Portfolio Rebalance Report is sent to the adviser. The client can either contribute additional funds to reposition the portfolio back to its original target asset mix, or can transfer funds within the account to rebalance the account. • Does my client have to rebalance his or her asset mix? Your client can choose whether or not to rebalance. If the asset mix variance is greater than 8% from the target asset mix, and the client chooses not to rebalance, however, we suggest you create a new Investment Policy Statement for the client. • Is the client involved in the rebalancing process? To initiate the rebalancing, the client must sign the Portfolio Rebalance Report.
